What would be the anticipated effect on income

Reference no: EM132669901

Question - If the firm capitalized future minimum lease payments under operating leases on Jan. 1, 2012, what would be the anticipated effect on 2012 after-tax income? Assume that the firm does not plan to enter into any new leases in the coming year. Assume that your answer to part (a) was $400 million. Assets currently under operating leases have an average expected remaining economic life of 9 years with salvage value of $40 million. Assume all of the assets under operating leases are depreciable assets. The firm uses straight-line depreciation methods for similar assets that it legally owns and has a federal marginal tax rate of 35%.

Reference no: EM132669901

Questions Cloud

Did the punishment fit the crime : Did the punishment fit the crime? Should someone be held responsible for posts made when they were teenagers? What about in this case?

Explain what meant by sufficient appropriate audit evidence : Explain what is meant by sufficient appropriate audit evidence. In testing investments in listed securities, Raymond selected all shareholdings with a market

Identify the different precautionary measures : Identify the different precautionary measures to avoid contamination in handling the pathogenic microorganisms

Record the entry for redemption of the bonds : The corporation called half the bonds at the call price of 102 (102% of the face amount), Record the entry for redemption of the bonds as of 1/1/2021

What would be the anticipated effect on income : If the firm capitalized future minimum lease payments under operating leases on Jan. 1, 2012, what would be the anticipated effect on 2012 after-tax income

Identify and research a social movement : Identify and research a Social Movement. What framework is used? What is the activists meaning or belief-system? Was it/is it successful? How/Why not?

Prepare appropriate entries for insight machines : Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

Which type of social movement is the most successful form : What are some of the persistent inequalities within our society and how are they connected to limiting citizenship and all of its rights? Evaluate which type.

What is shingles : 1) Which host enzymes does it use to transcribe the viral genes?

User Account

All Pages